72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2172
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Oregon Department of Administrative Services)
CHAPTER ................
AN ACT
Relating to self-insurance programs managed by Public Employees'
Benefit Board; amending ORS 243.105, 243.145, 243.167, 243.285
and 292.051.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 243.105 is amended to read:
243.105. As used in ORS 243.105 to 243.285, unless the context
requires otherwise:
(1) 'Benefit plan' includes, but is not limited to { - , - }
{ + :
(a) + } Contracts for insurance or other { - benefit based on
life; supplemental medical, supplemental dental, optical,
accidental death or disability insurance; group medical,
surgical, hospital or any other remedial - } { + benefits,
including medical, dental, vision, life, disability and other
health + } care recognized by state law { - ; - } { + , + } and
related services and supplies { - . 'Benefit plan ' includes - }
{ + ;
(b) + } Comparable benefits for employees who rely on spiritual
means of healing { + ; and
(c) Self-insurance programs managed by the Public Employees'
Benefit Board + }.
(2) 'Board' means the Public Employees' Benefit Board.
(3) 'Carrier' means an insurance company or health care service
contractor holding a valid certificate of authority from the
Director of the Department of Consumer and Business Services, or
two or more companies or contractors acting together pursuant to
a joint venture, partnership or other joint means of operation,
or a board-approved guarantor of benefit plan coverage and
compensation.
(4)(a) 'Eligible employee' means an officer or employee of a
state agency who elects to participate in one of the group
benefit plans described in ORS 243.135. The term includes state
officers and employees in the exempt, unclassified and classified
service, and state officers and employees, whether or not
retired, who:
(A) Are receiving a service or disability retirement allowance
under the Public Employees Retirement System or are receiving a
service or disability retirement allowance or pension under any
other retirement or disability benefit plan or system offered by
the State of Oregon for its officers and employees;
Enrolled House Bill 2172 (HB 2172-INTRO) Page 1
(B) Are eligible to receive a service retirement allowance
under the Public Employees Retirement System and have reached
earliest retirement age under ORS chapter 238; or
(C) Are eligible to receive a service retirement allowance or
pension under another retirement benefit plan or system offered
by the State of Oregon and have attained earliest retirement age
under the plan or system.
(b) 'Eligible employee' does not include individuals:
(A) Engaged as independent contractors;
(B) Whose periods of employment in emergency work are on an
intermittent or irregular basis;
(C) Who are employed on less than half-time basis unless the
individuals are employed in positions classified as job-sharing
positions or unless the individuals are defined as eligible under
rules of the board;
(D) Appointed under ORS 240.309;
(E) Provided sheltered employment or made-work by the state in
an employment or industries program maintained for the benefit of
such individuals; or
(F) Provided student health care services in conjunction with
their enrollment as students at the state institutions of higher
education.
(5) 'Family member' means an eligible employee's spouse and any
unmarried child or stepchild within age limits and other
conditions imposed by the board with regard to unmarried children
or stepchildren.
(6) 'Payroll disbursing officer' means the officer or official
authorized to disburse moneys in payment of salaries and wages of
employees of a state agency.
(7) 'Premium' means the monthly or other periodic charge for a
benefit plan.
(8) 'State agency' means every state officer, board,
commission, department or other activity of state government.
SECTION 2. ORS 243.145 is amended to read:
243.145. (1) The Public Employees' Benefit Board shall have
authority to employ whatever means are reasonably necessary to
carry out the purposes of ORS 243.105 to 243.285 and 292.051.
Such authority shall include but is not limited to authority to
{ + self-insure and to + } seek clarification, amendment,
modification, suspension or termination of any agreement or
contract that in the board's judgment requires such action.
(2) Upon providing specific notice in writing to the carrier,
the affected employee organization or organizations, the Oregon
Department of Administrative Services and affected, eligible
employees, and after affording opportunity for a public hearing
upon the issues that may be involved, the board may enter an
order withdrawing approval of any benefit plan. Thirty days after
entry of the order, the board shall terminate all withholding
authorizations of eligible employees and terminate all
board-approved participation in the plan.
(3) The board by order may terminate the participation of any
state agency if within three months the state agency fails to
perform any action required by ORS 243.105 to 243.285 and 292.051
or by board rule.
SECTION 3. ORS 243.167 is amended to read:
243.167. (1) There is created the Public Employees' Revolving
Fund, separate and distinct from the General Fund. The balances
of the Public Employees' Revolving Fund are continuously
appropriated to cover expenses incurred in connection with the
administration of ORS 243.105 to 243.285 and 292.051. Assets of
Enrolled House Bill 2172 (HB 2172-INTRO) Page 2
the Public Employees' Revolving Fund may be retained for limited
periods of time as established by the Public Employees' Benefit
Board by rule. Among other purposes, the board may retain the
funds to control expenditures { + , + } { - and to - }
stabilize benefit premium rates { + and self-insure + }. The
board may establish subaccounts within the Public Employees'
Revolving Fund.
(2) There is appropriated to the Public Employees' Revolving
Fund all unused employer contributions for employee benefits and
all refunds, dividends, unused premiums and other payments
attributable to any employee contribution or employer
contribution made from any carrier or contractor that has
provided employee benefits administered by the board, and all
interest earned on such moneys.
SECTION 4. ORS 243.285 is amended to read:
243.285. (1) Upon receipt of the request in writing of an
eligible employee so to do, the payroll disbursing officer
authorized to disburse funds in payment of the salary or wages of
the eligible employee may deduct from the salary or wages of the
employee an amount of money indicated in { - such - }
{ + the + } request for payment of the applicable amount set
forth in { - contracts made - } { + benefit plans selected + }
by the employee or { - made - } { + selected + } on the
employee's behalf for:
(a) Group health and related services and supplies, including
such insurance for family members of the eligible employee.
(b) Group life insurance, including life insurance for family
members of the eligible employee.
(c) Group dental and related services and supplies, or any
other remedial care recognized by state law and related services
and supplies, recognized under state law, including such
insurance for family members of the eligible employee.
(d) Group indemnity insurance for accidental death and
dismemberment and for loss of income due to accident, sickness or
other disability, including such insurance for family members of
the eligible employee.
(e) Other { - benefit plans - } { + benefits, including
self-insurance programs, that are + } approved and provided by
the Public Employees' Benefit Board.
(2) Moneys deducted { - pursuant to - } { + under + }
subsection (1) of this section shall be paid over promptly { + :
(a) + } To the carriers or persons responsible for payment of
premiums to carriers, in accordance with the terms of the
contracts made by the eligible employees or on their behalf { + ;
or
(b) With respect to self-insurance benefits, in accordance with
rules, procedures and directions of the Public Employees' Benefit
Board + }.
SECTION 5. ORS 292.051 is amended to read:
292.051. (1) Except as authority over contracts for health
benefit plans described in ORS 243.135 is vested in the Public
Employees' Benefit Board, upon receipt of the request in writing
of an officer or employee so to do, the state official authorized
to disburse funds in payment of the salary or wages of the
officer or employee may deduct from the salary or wages of the
officer or employee an amount of money indicated in the request
for payment of the applicable amount set forth in { - contracts
made - } { + benefit plans selected + } by the officers or
employees or in their behalf for:
Enrolled House Bill 2172 (HB 2172-INTRO) Page 3
(a) Group life insurance, including life insurance for
dependents of officers or employees.
(b) Group dental and related services and supplies, or any
other remedial care recognized by state law and related services
and supplies, other than medical, surgical or hospital care,
recognized under state law, including such insurance for
dependents of state officers or employees.
(c) Group indemnity insurance for accidental death and
dismemberment and for loss of income due to accident, sickness or
other disability, including such insurance for dependents of
state officers or employees.
(d) Automobile casualty insurance under a monthly payroll
deduction program endorsed or offered by an employee organization
representing 500 or more state employees. Membership in the
employee organization { - shall not be - } { + is not + } a
requirement for participation in this program.
(e) Legal insurance under a monthly payroll deduction program
endorsed or offered by an employee organization representing 500
or more state employees.
{ + (f) Self-insurance programs that are approved and
provided by the Public Employees' Benefit Board. + }
(2) The Oregon Department of Administrative Services may
establish and collect a fee to cover costs of administering this
section.
(3) No state official authorized to disburse funds in payment
of salaries or wages is required to make deductions as authorized
by subsection (1) of this section for more than one
{ - contract - } { + benefit plan + } of the type referred to
in each of the paragraphs in subsection (1) of this section per
eligible employee.
(4) Moneys deducted { - pursuant to - } { + under + }
subsection (1) of this section shall be paid over promptly { + :
(a) + } To the insurance companies, agencies or hospital
associations, or persons responsible for payment of premiums to
the companies, agencies or associations, in accordance with the
terms of the contracts made by the officers or employees or in
their behalf { + ; or
(b) With respect to self-insurance benefits, in accordance with
rules, procedures and directions of the Public Employees' Benefit
Board + }.
(5) As used in this section, 'officer or employee' means all
persons who receive salaries or wages disbursed by any state
official.
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Enrolled House Bill 2172 (HB 2172-INTRO) Page 4
Passed by House July 17, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate July 29, 2003
...........................................................
President of Senate
Enrolled House Bill 2172 (HB 2172-INTRO) Page 5
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2172 (HB 2172-INTRO) Page 6